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Your estimate of the market risk premium is 6%.  The risk-free rate of return is 5%, and General Motors has a beta of 1.2.  According to the Capital Asset Pricing Model (CAPM), what is its expected return?

▸ 9.1%

▸ 12.0%

▸ 10.5%

▸ 12.2%
Textbook 
Fundamentals of Corporate Finance
Edition: 2nd
Authors:
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